MDs & CEOs, Are You Feeling Any Pain Today?
Pabasso's Peer Advisory Boards help CEOs and MDs with painful business challenges, through the shared expertise of up to 12 other leaders.
What If?
Avoid the Law of Unintended Consequences. Plan for risks, review incentives, and consult experts to prevent costly U-turns and leadership errors.
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All business leaders need to beware of the Law of Unintended Consequences.
I always suggest to business leaders, when they are considering implementing significant changes, that they carefully consider the possible outcomes and try to mitigate any challenges that may arise.
It's particularly important when implementing/changing incentive plans, including bonuses, commission plans, share options, etc., and of course, business events where unlimited alcohol is available!
Always consider - What if?
Bonus plans should be set for the forthcoming business year and reviewed annually, as should commission plans. We don't always get it right the first time, and circumstances change.
Share incentives should take into account what might happen if, for example, a recipient doesn't deliver as expected, they die in service, they decide to leave, or you need to get rid of them. Good leaver/bad leaver clauses are essential.
Some years ago, as a reward for over-delivering, I took my top performers and their partners away for a long weekend to Paris, and we included an evening at the world-famous Moulin Rouge. What could go wrong?
I had clearly misplaced my crystal ball when planning that one!
There are many examples of where our current government should have considered the Law of Unintended Consequences; the alternative is multiple U-turns.
Granted, in the absence of a crystal ball, none of us can get it right all the time, but broad experience, expertise and wise consideration can prevent many problems and the consequential need for U-turns.
That is why it's wise to consult widely when making major decisions, just as our Pabasso - Peer Advisory Board Associates MD & CEO members do when we discuss challenges, issues and opportunities in our regular monthly meetings.
If you are an ambitious MD or CEO of an established business in Yorkshire and would like to know more about how we help business leaders avoid such things as U-Turns, then please get in touch to find out more.
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